Tuesday, 7 August 2012

British Falkland Islands: US Company announces farm-in deal with Falkland Oil and Gas

US company Noble Energy announced it has entered into an agreement with Falkland Oil and Gas (FOGL), under which Noble Energy is acquiring an interest in extensive license areas consisting of approximately 10 million acres located South and East of the British Falkland Islands.

"We have now brought in two highly respected international exploration and production companies and with this strong partnership in place, we have the financial and technical resources to help realise the potential from our large acreage position in the Falkland Islands," said FOGL’s Chief Executive Tim Bushell.

Noble explained today it will farm-in to the Northern Area Licences for a 35% interest except for two excluded areas. FOGL will continue as operator of the entire Northern Area Licences until early 2013, when operatorship of the farm-in area will be transferred to Noble.

According to a Noble statement the farm-out brings in “another significant industry partner for FOGL whose interests and expertise complement those of Edison. The farm out substantially improves FOGL's financial position.”

Noble Energy is an independent energy company engaged in worldwide oil and gas exploration and production. The Company has core operations onshore in the US, primarily in the DJ Basin and Marcellus Shale, in the deepwater Gulf of Mexico, offshore Eastern Mediterranean, and offshore West Africa.

“After careful study, we believe this region is very consistent with our new ventures exploration strategy of entering regions that provide prospects that are not only material in size, but also where initial success can de-risk subsequent opportunities,” explained Noble’s CEO Charles D. Davidson.